Europe invests 377 million euros to drive digitalization in Western Balkans SMEs

In a significant initiative aimed at bolstering the economies of the Western Balkans, the European Bank for Reconstruction and Development (EBRD) has launched the 'Go Digital' program with a substantial financial commitment of 377 million euros. This program is designed to address the technological gaps faced by small and medium-sized enterprises (SMEs) in the region, which have been pivotal for local economic development and job creation. The overarching aim is to enhance these businesses' capabilities, enabling them to be more innovative, productive, and globally competitive. The funding allocated under this program includes loans and grants, where the EBRD plans to distribute up to 350 million euros to partner financial institutions throughout the Western Balkans. These institutions will, in turn, provide financial support to SMEs through loans specifically tailored for investments in various aspects of digital transformation, automation, and green technologies. Furthermore, the program includes grant incentives amounting to 10 percent of the loan amount, which will be funded by the European Union. The European Union has committed 27.6 million euros towards providing grants and technical assistance as part of the initiative, further showcasing the collaborative efforts to rejuvenate the private sector in the region. This program builds upon the success of a pilot initiative launched in Bosnia and Herzegovina, which had a budget of 11.5 million euros and resulted in nearly 200 local companies receiving support that improved their productivity and competitiveness. This digitalization effort is timely, considering the growing need for SMEs to adapt to the rapidly evolving global market dynamics. The support provided under the 'Go Digital' program is not merely financial but extends to technical assistance, ensuring that businesses are equipped with the knowledge and tools to implement new technologies effectively. It represents a concerted effort to bolster the SMEs, recognized by officials from both the EBRD and the EU as essential pillars of the local economies, and is expected to catalyze a wave of innovation and growth across the Western Balkans region.